32 Pru layoffs to accompany Medicare exit Health care

Prudential HealthCare expects to lay off 32 employees next month as the result of its decision to leave the Maryland Medicare market.

The 32 employees all were in sales and marketing positions for the HMO's program for Medicare patients, said Kevin Heine, a Prudential spokesman.

The HMO is leaving the Medicare market here because, it says, the costs of providing the coverage were higher than the premiums it collected.

Prudential said it would not offer Medicare HMO coverage after Jan. 1 in Maryland, the District of Columbia, California, New York, New Jersey and parts of Florida. The decision forces 25,000 seniors, including 8,400 in Maryland, to choose new health insurance plans.

The 32 employees all will receive 60 days' pay, a severance package based on years of service with the HMO, subsidized benefits of up to 18 months and help finding other jobs, Heine said.